Toys & # 39; R & # 39; Us will close 26 stores in the United Kingdom in a court-ordered restructuring – tech2.org

Toys & # 39; R & # 39; Us will close 26 stores in the United Kingdom in a court-ordered restructuring



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Toys "R" Us Inc. plans to close at least 26 stores in the UK as the retailer goes through bankruptcy proceedings in the US. UU

Closures, starting in the spring of 2018, will reduce rents in store-size stores and allow the company to focus on small stores with better performance and online operations, according to a statement sent by email . ]Monday. The arm of U.K. will seek a voluntary agreement from the company, a type of insolvency procedure led by a court.

Warehouse stores "are too large and expensive to operate in the current retail environment," UK managing director Steve Knights said in the statement. "The business has had losses in recent years, so we must take firm and decisive measures to accelerate the transformation."

Toys "R" Us applied for Chapter 11 in a US court. UU A few months ago, after yielding under the debt of a leveraged purchase of $ 7.5 billion in 2005 led by Bain Capital, KKR & Co. and Vornado Realty Trust. The New Jersey-based retailer, which operates in 38 countries, also faces competition from online sellers.

The CVA restructuring plan of the British arm must be approved by the creditors in a vote scheduled for December 21. The statement does not say which stores will close or how many job losses there will be among the 3,200 employees of the company in the United Kingdom.

– With the badistance of Alastair Marsh

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